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Trading statements

SIG Plc improves FY 2016 sales on forex boost

13 January 2017 07:11

SIG Plc said group sales in 2016 were about £2,738m, an increase of 11.2% compared to prior year, having benefited from forex movements (+6.9%), acquisitions (+3.7%), and working days (0.3%).

On a like-for-like ("LFL") basis Group sales increased 0.3%.

"In line with previous guidance the Group continues to expect that underlying profit before tax for 2016 will be within its previously stated £75m to £80m range, and that gross margin will be around 30bps lower than prior year," the company said in a statement.

"In the UK & Ireland LFL sales in the year increased 1.1%, with SIG Distribution up 1.2% and SIG Exteriors down 1.5%. In Mainland Europe LFL sales declined 0.5%, with France and Germany down 2.0% and 1.3% respectively."

SIG's leverage as at 31 December 2016 is expected to be c.2x (net debt to EBITDA), above its medium-term target of 1 - 1.5x.

"Going forward the Group will prioritise leverage reduction by more tightly focusing on its cash generation, moderating capital expenditure and suspending its infill acquisition programme," SIG said.

Story provided by StockMarketWire.com

Related Company: SHI

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